From Authoritarianism to Welfarism at David Jones, 1838-1958
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“Selling Consent”: From Authoritarianism to Welfarism at David Jones, 1838-1958 Bradley John Pragnell A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in the School of Industrial Relations and Organisation Behaviour, Faculty of Commerce at the University of New South Wales, Australia. 2001 i ABS TRACT This thesis investigates the history of labour management at David Jones, the major Australian retailer and manufacturer, between the years 1838 and 1958. This thesis examines the development of consent-based approach to labour management at David Jones, in particular the development of paternalism and welfarism. In doing so this thesis explores both general questions regarding the factors that influence why certain firms adopt a consent-based approach to labour management, as well as informing debates around the existence of nineteenth century paternalism and the origins of twentieth century welfarism. The historical material contained at the David Jones Archives and elsewhere reveals little evidence of paternalism as a deliberate management strategy. This brings into question the usefulness of paternalism as a concept in the historical study of Australian labour management. The inability to trace paternalism also undermines explanations of twentieth century welfarism premised on the pre- existence of nineteenth century paternalism. The historical materials, however, do note that twentieth century welfarism was a deliberate labour management strategy adopted by David Jones management. Welfarism, combined with systematic management and training, was initially adopted following the First World War to deal with the threat of industrial turmoil. However, in the 1930s, welfarism increasingly became a pro-active strategy designed to create skilled selling and raise the profile of the firm within the community. Further, welfarism at David Jones in the inter-war period was more than merely a new form of paternalism, somehow transformed by being in a larger, more bureaucratic setting or a result of employers confronted an increasingly feminised workforce. Welfarism at David Jones was a deliberate strategy, informed by overseas experiments, management consultants and the new science of psychology. Welfarism at David Jones continued into the post World War Two period. However, new forms of retailing, in particular self-service, undermined attempts to create skilled selling. Elements of welfarism remain at David Jones and continue to support the firm’s corporate image as a provider of high-quality customer service. ii DECLARATION I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any degree or diploma at UNSW or any other educational institution, except where due acknowledgment is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the project’s design and conception or in style, presentation and linguistic expression is acknowledged. Bradley John Pragnell iii ACKNOWLEDGEMENTS Like most other written work, the appearance of an individual author masks a more complex reality where it is only through a collective effort that such a work is completed. This author, while the sole producer of the written text, could not have completed this work without the active support of family, friends and colleagues. Thanks are due to my supervisors, Bradon Ellem, Chris Wright and Michael Hess, for provision of support and assistance. Special thanks must also go to the staff at the Australian Centre for Industrial Relations Research and Training (ACIRRT) at the University of Sydney, where the author worked between 1993 and 1996. Director Ron Callus and Deputy Director John Buchanan are to be thanked for their support, assistance, insights and humour. Special thanks are extended to my ACIRRT co-workers of that period, particularly Richard Pickersgill, Kathryn Heiler, Shannon O’Keeffe, Paul Ronfeldt, Linda Cowan, Michelle Spartalis, Michelle Schumacher and, in particular, Merilyn Bryce, who kindly proof read a final version of this thesis. Staff and fellow graduate students at both the School of Industrial Relations and Organisation Behaviour at the University of New South Wales and the Department of Industrial Relations (recently retitled “Work and Organisational Studies”) at the University of Sydney, provided intellectual and emotional support throughout the long days. In particular, my friend and collaborator, Dr Michael O’Donnell at UNSW is to be thanked for his support. Special thanks go to Barbara Horton, Archivist for David Jones Limited, without whose assistance, support and good humour this thesis would have never been completed. The author would like to thank family and friends for their support and encouragement through this process; including, my three sons, Lachlan, Finn and Seamas, who were all born while this thesis remained in vitro, the Dawson family, and my parents, Wally and Diane Pragnell. Lastly, but most importantly, I would like to thank my partner, Michelle Dawson, for her tireless and unceasing support, sacrifice, encouragement and love. iv TABLE O F CO NTENTS Abstract i Declaration ii Acknowledgments iii Table of Contents iv INTRODUCTION 1 CHAPTER ONE Towards a Historical Understanding of Employers’ Consent-Based Approaches to Labour Management 6 CHAPTER TWO Consent-Based Approaches to Labour Management: Defining, Analysing and Theorising Paternalism and Welfarism 30 CHAPTER THREE Nineteenth Century Labour Management at David Jones & Co., 1838-1887 68 CHAPTER FOUR David Jones & Co. and the Politics of the Early Closing of Shops in NSW, 1830-1900 101 CHAPTER FIVE The Tailors’ Strike of 1891-92 at David Jones & Co. 133 CHAPTER SIX Early Welfarist Experiments at David Jones Ltd., 1900–1914 153 CHAPTER SEVEN Introduction of Welfarism and Systematic Labour Management at David Jones Ltd., 1914-1926 183 CHAPTER EIGHT The Consolidation of Welfarism at David Jones Ltd., 1927-1939 239 CHAPTER NINE Welfarism Challenged, 1939-1958 272 CONCLUSION 295 Bibliography 302 INTRODUCTION David Jones brings about an emotional response from many Australians. For many older Sydneysiders who frequented the David Jones’ stores in Sydney’s Central Business District, the firm represented the height of sophistication and service. For many younger Australians, there is but a dull glimmer of the past sophistication and service at David Jones’ scattered throughout suburban malls and “shopping towns”. Currently, the firm is more likely to be associated in the public imagination with its television and print ads, the “There’s no other store” jingle and the ever-present houndstooth. Yet in a world where many Australian “icons” have disappeared, David Jones remains, having been in business since 1838, a tangible link to a distant colonial past. This thesis investigates the history of labour management at the major Australian retailer, David Jones, from its founding in 1838 until 1958. It documents the labour management practices and policies adopted by David Jones throughout this period. This includes how management sought to organise work, how labour was recruited and selected, how employees were rewarded and punished and how the firm dealt with the demands of employees, their organisations and governments, all the while attempting to maintain the firm’s standing in the broader community. This thesis will seek to answer several questions concerning labour management at David Jones. First, “Did paternalism exist at David Jones in the nineteenth century and if it did what were its origins?”. Second, “Did welfarism exist at David Jones in the twentieth century and if it did, what were its origins, in particular, was welfarism 1 merely an extension of paternalism?”. Third, “Did welfarism ‘survive’ its initial introduction and what was its’ long-term legacy?”. From a single drapery store in 1838, David Jones & Co. (renamed David Jones Ltd. in 1907) became one of Australia's premier retailers with department stores in four states and the Australian Capital Territory. The company also has a considerable history as a clothing manufacturer in its own right. David Jones is important in regards to labour management for several reasons. Since the 1870s and up until the present, it has been one of Australia's largest private sector employers. As well, the firm stands as a pioneer of formalised labour management in Australia and an important example of an employer adopting a “consent-based” approach to labour management. This history will seek to inform debates within the emerging labour management historiography. On the one hand, this history will contribute to the on-going reappraisal within the Australian literature, further questioning the view that Australian employers have historically been "weak" and "reactive" in relation to labour management. It will be noted that David Jones was highly pro-active in its approach to labour management particularly through its embrace of welfarism in the first decades of the twentieth century. As well, by examining David Jones, this thesis seeks to complement recent historical literature on the development of labour management in Australia. As such this thesis will help